April 2020 - ISSUE 37 INVEST-GATE
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MARKET WATCH BY DINA EL BEHIRY POWERED BY POWERED BY MARKET WATCH REAL ESTATE INDUSTRY ACCOMPLISHMENTS NATIONAL STRATEGY FOR URBAN DEVELOPMENT 2052 REVENUE EXPECTATIONS IN 2020 TARGET New Urban Communities doubling urbanization rate Authority's (NUCA) target % % EGP bn HOUSING PROJECTS INFRASTRUCTURE Social Housing & Mortgage Finance Fund Offers New Units Government to Develop Roads Area Payment Period Up to 150 meters per unit Up to 20 years No. of Roads 197 Payment Method Minimum Installment Installments EGP 3,100 Roads’ Length 840 kilometers (km) Location Beit El Watan Project (7th Phase) Giza, Qaluobiya, Mounifya, Dakhlya, Beheira, Kafr El Sheikh, Sharqiyah, Gharbia, Damietta, Beni Suef, Fayoum & Minya New Housing Units Government to Construct New Roads Number of Cities Location 5 Sheikh Zayed, New Cairo, 6th of October, New Damietta & New Mansoura No. of Roads 2,652 New Residential Plots Roads’ Length 6,587 km Number of Cities Location 8 Sheikh Zayed, 6th of October, El Obour, New Damietta, Badr, New Cairo, El Shorouk Investments & Sadat EGP 12.7 bn Delivery Time Government to Implement New Projects in Fiscal Year (FY) 2019/20 2021-2022 Number of Projects Location Sohag, Beni Suef, Minya, 202 Assiut & Aswan Egyptian government to develop ring road Target Investments Developing villages EGP 944 mn with investments exceed EGP 7 bn Sources: Cabinet, Ministry of Housing, Ministry of Planning, Monitoring and Administrative Reform (MPMAR) & Social Housing and Mortgage Finance Fund. 2 aprIL 2020 - ISSUE 37 INVEST-GATE LAND OFFERING NUCA Offers Ministry of Housing Offers New Plots No. of New Plots Location Badr, Sadat, New Minya, 10th of Ramadan, 15th of May, 30 New Borg El Arab, New Beni Suef, New Assiut & New Aswan 25 5 Target New housing projects New Assiut East Port Said No. of New Plots (Sallam) 15 Acres 5 12 Acres New Borg El Arab New Teba PRICES OF CONSTRUCTION MATERIALS 10 Acres 30 Acres (FEBRUARY 2020) (EGP) New 6th of October 9.6 Acres STEEL CRETAL PORTLAND COARSE BARS STEEL CEMENT SAND (per ton) (per ton) (per ton) (per sqm) Target , , establish technological universities (YOY -14.2%) (YOY -18.4%) (YOY -4.8%) (YOY 7. 7 %) SOLID CEMENT BRICKS BRICK HOLLOW CONCRETE (per 1,000 bricks) (40x20x12 cm) (per 1,000 bricks) , , (YOY 3.8%) (YOY 4%) No. of New Plots 25 REAL ESTATE & CONSTRUCTION STOCK MARKETS INDEXES PERFORMANCE IN EGYPT (2020) Location 10 new cities (unveiled names) Real Estate Construction & Materials Target establish urban, medical, industrial, commercial & administrative projects POINTS 30 JAN 06 FEB 13 FEB 20 FEB 27 FEB NUCA Approves Allocating a Plot for National Hispanic Medical Coalition (NHMC) ONLINE MONTHLY SURVEY (%) Area 72.2 Acres HOW DO YOU RANK THE GOVERNMENT'S ACHIEVEMENTS IN THE INFRASTRUCTURE SECTOR? Location 31% El Shorouk 21% 17% 17% 14% Target Medical Services 1 2 3 4 5 Sources: Cabinet, Ministry of Housing, Egyptian Exchange (EGX) & Invest-Gate THE VOICE OF REAL ESTATE 3 MARKET WATCH NEW CITIES' UPDATES NEW ADMINISTRATIVE CAPITAL (NAC) NUCA Offers New Plots Location No. of Plots Area R3 District 6 1,200-11,000 square meters (m2) Area Projects Commercial Administrative st 1,690.4 m2 Hotel nd 4,058.8 m2 rd 2,270 m2 1 2 Project 3 Project Commercial th 2 th 2 th 3,830 m2 4 10,662.9 m School 5 1,289 m Nursery 6 Project Capital Residence Location Area R3 District 1,000 Acres No. of Neighbourhoods Residential Units 8 (in progress) The Administrative Capital for Urban 24,130 Development Company plans to Accomplished by pump USD150 mn for Technological 86% advancements during 2020 BADR CITY EL ANDALUS (NEIGHBOURHOOD) Location Area Location Investments East Badr City 33,000 Acres 10th of Ramadan USD 4.4 bn No. of Housing Units Investments No. of Housing Units 33,000 EGP 8.5 bn 11,380 Delivery Date No. of Completed Units Remaining Units May 2021 2800 60% are completed Source: Ministry of Housing, Utilities, and Urban Communities 4 aprIL 2020 - ISSUE 37 INVEST-GATE DEVELOPERS FINANCIAL STATUS 2019 VS. 2018 2018 2019 TOP COMPANIES LISTED IN EGX BASED ON HIGHEST PROFITS T alaat Moustafa Group Holding 10.9 11.7 1,704 1,872 Revenues (EGP bn) 7.3% Net profit (EGP mn) 9.9% Emaar Misr for Development 6.3 5.4 3,400 1,700 Revenues (EGP bn) 14.3% Net profit (EGP mn) 50% Medinet Nasr Housing 2.8 2.2 1,100 1,000 Revenues (EGP bn) 21.4% Net profit (EGP mn) 9.1% Palm Hills Development Company 7.4 6.2 906.8 906.2 Revenues (EGP bn) 16.2% Net profit (EGP mn) 0.07% Six of October Development & Investment (SODIC) 3.7 5.3 450.9 721.2 Revenues (EGP bn) 43.2% Net profit (EGP mn) 59.9% Zahraa Maadi Investment & Development 0.5765 0.429 152.6 177.1 Revenues (EGP bn) 25.6% Net profit (EGP mn) 16.1% El Shams Housing & Urbanization 0.3052 0.2187 207.4 135.6 Revenues (EGP bn) 28.3% Net profit (EGP mn) 34.6% Development & Engineering Consultants 0.06408 0.06099 22.8 29.3 Revenues (EGP bn) 4.8% Net profit (EGP mn) 28.5% Egyptians Housing Development & Reconstruction 0.7424 0.2046 330.7 47.8 Revenues (EGP bn) 72.4% Net profit (EGP mn) 85.5% Emerald Real Estate Investment 0.056 0.0593 17.6 26.2 Revenues (EGP bn) 5.9% Net profit (EGP mn) 48.9% Overall 3.284418 3.177259 829.28 661.54 Index 3.3% 20.2% Source: Egyptian Exchange (EGX) THE VOICE OF REAL ESTATE 5 MARKET WATCH DEVELOPERS PROJECTS RESIDENTIAL PROJECT Developer Location Area Investment ARDIC for Real Esate Mostakbal City 70 Acres EGP 38 bn Development & Investment Zizinia No. of Restaurants No. of Units Shopping Mall Medical Center El Mostakbal Supply Volume 1,756 No. of Restaurants Artificial Lakes Social Club Mosque Developer Location Area Target Contracting Sales Mardev Developments New Administrative 17.5 Acres EGP 1.4 bn Capital (NAC) Menorca Developer Location ARDIC for Real Esate Development & Investment Mostakbal City No. of Restaurants The 205-Acre Supply Volume 3 Hotels Business & Commercial Areas No. of Restaurants Project One Tower with 45 floors School Developer Location Area Investment Cairo West ALDAU Development West Cairo 10 Acres EGP 300 mn Residence (2nd Phase) Developer Location Misr Italia Properties Mostakbal City No. of Units Supply Volume Villas Twinhouses Sila 840 No. of Restaurants (Bosco City’s New Phase) Area No. of Restaurants 76-185 m2 for Apartments & 239-459 m2 Townhouses Apartments Mosque for Twinhouses &Villas Developer Location Area Inertia 6th of October City 27 Acres New Project (Unveiled Name) Investment Delivery Date EGP 4 bn Q4 2020 Source: Developers’ official statements 6 aprIL 2020 - ISSUE 37 INVEST-GATE COMMERCIAL PROJECTS Developer Location Area Investment Arkan Palm in partnership 26th of July Axis in 205 Acres EGP 59 bn with NUCA Sheikh Zayed City New Complex (Unveiled Name) Supply Volume Integrated commercial, administrative, medical, and recreational complex. Developer Time Period No. of New Branches* Lulu Hypermarket 2020 Group Wadi Degla Park Mall- in front of AUC *Out of four new branches New Branches Plans to inaugurate 14 new branches in UAE, New expansion projects in NAC and Saudi Arabia, and Egypt during 2020 Al Alamein by 2022 Developer Location Area The Land Developers R7 District- NAC 18,000 m2 Investment Delivery Date (1st Phase) Armonia Walk EGP 500 mn September 2022 No. of Units No.Buildings' of Restaurants Height Supply Volume 1,750 7 floors No. of Restaurants Commercial Units Clinics Administrative Units HOSPITALITY PROJECTS Developer Location Area Investment Talaat Mostafa Holding’s Sultana Malak land 21,400 m2 EGP 1.5 bn unit, ICON & EGOTH in Luxor 5-Star Hotel Project (Unveiled Name) No. of Rooms & Suits No.Resturants of Restaurants Supply Volume 200 No. of Restaurants Meeting Rooms Gym Spa Developer Location Rixos Hurghada No. of Rooms & Suits No. ofof Job Restaurants Vacancies New Village Supply Volume 3,000 10,000 (Under Construction) No. of Football Yards No. of Restaurants 14 A conference hall for 1,000 attendees Source: Developers’ official statements THE VOICE OF REAL ESTATE 7 MARKET WATCH ECONOMIC SNAPSHOT WORLD’S MOST ECONOMICALLY POWERFUL CITIES ANNUAL HEADLINE INFLATION JANUARY FEBRUARY . % 1 London 2 New York .% 3 Tokyo 4 Paris 5 Singapore NET FOREIGN RESERVES (USD BN) FEBRUARY JANUARY . Cairo . 24 (Out of 100 cities) $ £ € Exchange Rates British Pound USD Euro NET FOREIGN DIRECT INVESTMENTS (USD BN) . Q1 2019/20 . . . 2.4 . - Jan - Feb - Feb - Feb - Feb 1.4 Q1 2018/19 CAPITAL MARKET INDICATORS SUEZ CANAL REVENUES (USD MN) EGX 30 EGX 70 EWI EGX 100 14,106 13,919 13,859 13,721 458.2 13,009 433.9 1,384 1,395 1,401 1,365 1,311 1,277 1,274 1,267 1,256 1,209 FY FEBRUARY FEBRUARY JAN FEB FEB FEB FEB Sources: Egyptian Exchange (EGX), Central Bank of Egypt (CBE), Central Agency for Public Mobilization and Statistics (CAPMAS) & Brand Finance 8 aprIL 2020 - ISSUE 37 INVEST-GATE GROSS DOMESTIC PRODUCT (GDP) GROWTH RATE BUDGET DEFICIT TO GDP Q2 2018/19 Q2 2019/20 .% .% .% 5.4% 5.6% FY / FY / FY / Ministry of Finance expects that the GDP Target FY 2019/20 Growth Rate will hit 6% in FY 2019/20 and 7% by 2022 7.2% GDP (EGP TRN) UNEMPLOYMENT RATE 5.2 Q4 2019 Q4 2018 1 FY 2018/19 4.3 2 FY 2017/18 3.4 8% 8.9% 3 FY 2016/17 DEBT TO GDP LABOR FORCE (mn) 94.5% 82.2% 71.9% 28.9 28.4 FY / / / Q1 2019/20 1.9% Q 66.7% Source: Cabinet THE VOICE OF REAL ESTATE 9 FULL ANALYSIS FACTS & FIGURES INVEST-GATE REAL ESTATE INDUSTRY ACCOMPLISHMENTS BY DINA EL BEHIRY With an eye on the efforts exerted by the government, particularly by the Ministry of Egypt has launched a new project on the 6th of October City, which will be delivered in Housing, Utilities, and Urban Communities, many real estate projects have been launched.